How much mark up does a jeweller make on a watch?

[Thankyou4calling]

I know it may not be a simple answer but if it were say "Price from watch company v retail price in shop window" what would the figures be and how much would it vary by brand.

Say a Tag.

Retail price = £4995.

Would the retailer get this watch in for £2750?

[Thankyou4calling]

gizlaroc said:

Of course not, but we are talking mark up, not margin, and certainly not net profit, which tells you bugger all about mark up.

42% mark up on a luxury item is small imho, you need to shift some units at that mark up.

I agree. I'm not talking about the profitability of a business taking into account all costs just the mark up.

The 42% you are referring to, is this buy in at £1000 retail at £1420 or sell at £1000 buy in at £420?

[Thankyou4calling]

Buster73 said:

42% mark up is buy in at £1000 sell at £1420 plus vat so retail at £1704 giving a GP % of 29.5

£1000 retail inc vat buying in at £420 is a mark up of 98 % giving a GP % of 49.5




I'm not privy to margins on branded watches but I'd put a calculated guess on 40- 50 GP % on some Rolex models .

Edited by Buster73 on Friday 27th May 13:13

Thanks, that's what I assumed. It isn't great to my mind.

[Thankyou4calling]

Blown2CV said:

bit reductionist, questions like this... that is if there is something underlying the reason to ask, such as a view that retailers make too much money? Got to bear in mind the skills and knowledge they generally have to carry, the credit line they need to have open (and the cost of paying for it), the insurance, premises, franchise/authorised dealer conditions imposed, the throughput of sales etc., conversion rates / time waster rates. All that stuff. Why the question?

Why the question?

I was just interested if anybody knew. I have an absolute fascination with business both personal and professional.

I've always been inquisitive as to how various businesses exist and the model they follow. If you aren't in an industry the assumptions are often wildly inaccurate so it comes from that.

I'm well aware that the mark up on a watch is only a tiny part of the business and by no means the full picture.